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Little Black Book of Project Management, The
by Michael C. Thomsett
AMACOM Books
ISBN: 0814477321 Pub Date: 01/01/90
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Introduction
Chapter 1—Organizing for the Long Term
Chapter 2—Creating the Plan
Chapter 3—Choosing the Project Team
Chapter 4—The Project Budget
Chapter 5—Establishing a Schedule
Chapter 6—The Rules of Flowcharting
Chapter 7—The Project Flowchart
Chapter 8—Supporting Documentation
Chapter 9—Project Review
Chapter 10—The Communication Challenge
Chapter 11—Project Management and Your Career
Appendix A
Index
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the end result. More likely you will be given an assignment that includes nothing beyond the
demand for a generalized end result. The rest is up to you.
This Little Black Book shows you how to take charge of a big project, define it, and then break it down into
smaller, more manageable phases. You will learn how to control a budget and schedule and lead a project
team through to successful completion. You will find out how to anticipate problems and plan for them during
the various project phases. And you will discover methods for establishing clear objectives for your project,
even when they are not defined at the point of assignment.
Because it’s a long-term process, project management causes even well-organized managers to experience
difficulty. But if you are accustomed to controlling routine work in your own department, you already
understand recurring workload cycles, staffing limitations, and budgetary restraints—the same issues you’ll
confront with projects.
However, the context is different: First, a project is nonrecurring, so problems and solutions are not matters of
routine; second, unlike the limitations on your department’s range of tasks, a project often crosses
departmental and authority lines; third, a project is planned and organized over several months, whereas
recurring tasks are projected ahead only for a few days or weeks.
Managing a project doesn’t require any skills you don’t already possess; you will employ the same
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management skills you use elsewhere. The planning, organizing, and execution steps just require greater
flexibility and a long-term view than your recurring tasks do, and the project is an exception to the daily or
monthly routine.
Running a project is like starting up a new department. What distinguishes both activities from your other
tasks is that there’s no historical budget, no predictable pattern to the problems or resistance points, and no
cycle on which to base today’s actions.
Think of this Little Black Book as the foundation of the project structure you’ll create. That structure will take
on a style, character, and arrangement of its own, but it must rest on a solid base of organizational skills,
definition, and control. This book will show you how to take charge of even the most complex project and
proceed with confidence in yourself and your project team. But protect this book, and be sure you can trust
those who might see you reading it. Keep it locked up in your desk or briefcase, and never leave it out in the
open where it may be borrowed permanently. This is your secret project tool; guard it well.

“He did, but he asked to be transferred here—after spending several years as a project
manager.”
Dread. That’s a common reaction to being given a project assignment. Thought of as the corporate version of
a root canal, a project is often seen as something to avoid rather than to seek.
But once you discover that the job of organizing and executing a project is not all that difficult, the
assignment will take on a different character. Instead of a difficult, if not impossible, task, it will become an
interesting challenge to your organizational skills—perhaps it will serve as an outlet for your creativity or a
way to demonstrate your skill—even as an excellent forum for developing your leadership abilities.
The secret is not in learning new skills but in applying the skills you already have, but in a new arena. The
project is probaby an exception to your normal routine. You need to operate with an eye to a longer-term
deadline than you have in the weekly or monthly cycle you’re more likely to experience in your department.
Of course, some managers operate projects routinely, and are accustomed to dealing with a unique set of
problems, restrictions, and deadlines in each case. For example, engineers, contractors, or architects move
from one project to another, often involving circumstances never encountered before. Still, they apply the
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same organizational skills to each and every job. That’s their routine.
It’s more likely that you run a department that deals with a series of recurring tasks from one month to
another: The same assignments, procedures, and results occur within the cycle; the same people perform the
same routines each time; and you can anticipate problems and deal with them in a very predictable way. So
when you are given an exceptional task—a project—you may be very uncomfortable and find yourself
asking:
How do I get started?
Exactly what am I expected to achieve?
Who is responsible for what, and how am I supposed to coordinate the effort?
It’s also likely that you’re used to receiving information from a known source and at a specific time. You
perform your routines—recording, interpreting, reporting, processing—and then convey the end result to
someone else. But on projects, you’ll be working with other departments so the steps involved in receiving,
performing, and reporting will probably be very different from what you’re used to.
This is a big challenge for someone who is assigned a one-time job (or a series of jobs) that are not part of his

4. The desired result is identified. Routines are aimed not at one outcome but at maintenance of
processes, whereas the research, development of procedures, or construction of systems or buildings on
a project produce a tangible, desired result.
Example: For her project, the customer service manager is expected to deliver a conclusive report. It’s
a one-time assignment, not one that will recur each month. But the routine reports her department
generates will still be produced as a maintenance function of her department.
Projects are also distinguished from routines by the way in which they must operate under the three
constraints of result, budget, and time (see Figure 1-2). To a degree, all management functions operate within
these constraints. For example, your department may be expected to perform and produce certain results; it’s
subjected to budgeting controls; and its work is planned and executed under a series of deadlines.
Figure 1-2 Three project constraints.
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Little Black Book of Project Management, The
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Example: A manager is given the assignment of preparing his department for automation. He puts a lot of
effort into defining the purpose, breaking out tasks, and devising a schedule and a budget. However, once the
work begins, the project falls apart because no control functions were planned. There is no specific
assignment of responsibility; nor does the manager compare actual progress to the schedule or watch project
expenses to keep them in line with the budget.
Example: A manager embarks on a project with a carefully designed monitoring and control system. She
delegates effectively, controls the schedule and budget, and completes the project on time. However, when the
final report is presented, she discovers that the result is not what was expected. Why? The manager didn’t ask
for a clear definition of the purpose at the onset.
As you can see in Figure 1-3, the definition component of a project is broken down into four segments and
control into five:
Figure 1-3 Defining and controlling the project.
Definition
1. Purpose. What is the expectation? Why is the project being undertaken, and what conclusions or
answers should it produce?
2. Tasks. How can a large project be broken down into a series of short-term progress steps?
Remember, although a big project may be overwhelming, smaller portions can be methodically
attacked and completed according to a schedule.
3. Schedule. What is the final deadline? And with that deadline in mind, how can a series of smaller
tasks be arranged, maintained, and scheduled? Proper scheduling of tasks on a week-to-week basis is
the key to meeting a long-term deadline.
4. Budget. How much should the project cost? Will the company have to invest money in research,
capital equipment, promotion, or market testing? What expenses should be planned for, and how much
money should be set aside to allow for successful completion?
Control
1. Team. As a project manager, you will need to gather the necessary team. You may have to borrow
resources from other departments, or use all or part of your own staff. But you can’t build the team until
you know the purpose, schedule, and budget for the project.

by Michael C. Thomsett
AMACOM Books
ISBN: 0814477321 Pub Date: 01/01/90
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THE SUCCESSFUL PROJECT MANAGER
A successful project manager knows how to bring together the definition and control elements and operate
them efficiently. That means you will need to apply the leadership skills you already apply in running a
department and practice the organizational abilities you need to constantly look to the future.
In other words, if you’re a qualified department manager, you already possess the skills and attributes for
succeeding as a project manager (see Figure 1-4). The criteria by which you will be selected will be similar.
Chances are, the project you’re assigned will have a direct relationship to the skills you need just to do your
job. For example:
• Organizational and leadership experience. An executive seeking a qualified project manager usually
seeks someone who has already demonstrated the ability to organize work and to lead others. He or she
assumes that you will succeed in a complicated long-term project primarily because you have already
demonstrated the required skills and experience.
• Contact with needed resources. For projects that involve a lot of coordination between departments,
divisions, or subsidiaries, top management will look for a project manager who already communicates
outside of a single department. If you have the contacts required for a project, it will naturally be
assumed that you are suited to run a project across departmental lines.
• Ability to coordinate a diverse resource pool. By itself, contact outside of your department may not
be enough. You must also be able to work with a variety of people and departments, even when their
backgrounds and disciplines are dissimilar. For example, as a capable project manager, you must be
able to delegate and monitor work not only in areas familiar to your own department but in areas that
are alien to your background.
Figure 1-4 Project manager qualifications.
• Communication and procedural skills. An effective project manager will be able to convey and
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The methodical project manager knows the right questions to ask. At the time a project is assigned, your
checklist should include the seven questions (listed in Figure 1-5) that will lead to complete definition. These
are:
Figure 1-5 Checklist: questions to ask.
1. What is the purpose of this project? From the description of an assignment you may make a series of
assumptions about what the person making the assignment wants. But in fact, he or she might have
something completely different in mind. A large number of the communication problems you confront
involve definition.
Example: As manager of the accounting department, you are given the project of developing a
procedures manual for preparing budgets. At first, it seems obvious that the purpose is to define
expense budgeting. But with a little more discussion, you learn that the desired budget is intended not

putting changes into effect. But when he informed other managers of the pending change, much of the
reaction was negative. The project manager met with the president again, surprised that no one knew
about his assumed mandate. “I only wanted you to make a recommendation,” the president said, “not to
start moving desks and chairs.”
In this case, the manager was given what he thought was a specific assignment. But without
establishing his level of authority, he ran into problems and did more than what the president had in
mind. Regardless of who fails to communicate, assume it’s your job to find out how much authority
you’ll have as project manager.
6. What is my budget? Some projects can be executed with little expense beyond the commitment of
time. Others involve spending money on research, writing reports, or purchasing equipment.
Always begin your project with a clear understanding of the budget. Don’t overlook the expense of
employee time, since that defines the real cost to the company of achieving the desired result.
7. What is the deadline? Always ask for a specific deadline. Only with a deadline will it be possible to
set a schedule and budget for successful completion. But while not having a deadline is a potential
problem, it’s more likely that assigned projects will place a strain on your resources. If you believe a
deadline is too short, ask for more time. If it isn’t granted, you’ll just have to put your organizational
skills to work and coordinate the phases of the project to meet it.
In establishing a schedule, you can often overlap some phases to make more efficient use of time. And it’s
always smart to allow a little more time than you’ll actually need to build a buffer into your schedule. But you
may find yourself running a project without any time luxury at all.
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instances, the project itself will be designed just to
identify those routines that should be automated.
Changing Departmental Procedures: You might have flexibility in the deadline, especially
if you originate the project on your own. However, a
specific deadline should still be imposed so that your
project team completes its work within a finite time
frame.
Projects, whether part of the usual work in your department or assigned as one-time jobs, can be classified and
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organized according to the scope and complexity of the work. Classification can be made based on:
• The number of resources you will use outside of your immediate department
• The size of the required project team
• The time span between inception and deadline
• Your familiarity with the information
As project manager, you will stay on schedule and within budget and complete the job on time by defining
and organizing carefully. In later chapters, we will demonstrate the methods for mastering even the most
complicated project. No job is too large if it’s first defined completely and then broken down into logical and
progressive steps. Chapter 2 examines the initial phase: creating the plan and defining objectives.
WORK PROJECT
1. Explain the distinction between projects and routines according to the following:
a. Range of functions
b. Relationship of activities or routines
c. Goals and deadlines
d. Project results
2. What are the three constraints under which a project is executed? How do these constraints define
your control responsibility?
3. Compare the definition and control elements of a project. Why are both essential to successful
execution of the assignment?
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All successful projects begin with a clear definition of the end result. That is, you need to identify the purpose
and structure of the job, what it will look like upon completion, the problems that will be solved, and the
objectives you’ll meet as project manager. So before you actually start work on any project, be sure that these
questions are answered:
1. Exactly what objectives am I expected to meet? Has the project been defined well enough so that
you know what the assignment is? By identifying objectives, you can better define the end result.
2. Who is the project for? Another way to define the end result is by making sure you know who will
use the project results, and for what purpose.
3. What problems will be solved by the end result? Coming up with a new procedure or new
information may be the tangible result of the project; but to make that end result worthwhile, you will
need to know what current or past problems should be solved by the efforts put into your project.
This chapter explains the methods for defining your project task: building your resource network, the purpose
of the first project meeting, setting objectives, coming up with an initial schedule, and identifying the key
elements of information, budgets, and team commitment.
SETTING LEADERSHIP GOALS
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After you come up with a clear definition, schedule, and budget for your project, you need to plan for the way
in which you’ll lead your project team. Because projects are often seen by team members as intrusions into
their routines—extra work that’s imposed on them—you may have to contend with resistance within the
team, or at least help team members resolve scheduling conflicts.
To make a project work smoothly, you may have to alter your leadership style. You should also clearly define
your function and the function of the team.
Some suggestions are listed in Figure 2-1 and explained as follows:
1. Clarify your leadership role. A department manager may gain the respect of his or her department
staff over time, regardless of individual style. But a project manager, like each person on the team, is
often thrust into a temporary leadership role, often over individuals from other departments. In this
situation, it’s important to let your project team know how you perceive that role.
Your function will vary depending on the complexity of each project and on the size and nature of the
team. But for most projects, you will function not as a supervisor or mediator but as a coordinator. You

take part in executing the project’s objective. Most of all, make their participation a reality, not just a
concept. You need to listen well when members offer ideas; when the ideas make sense, be willing to
change your assumptions.
7. Always remember the end result. When you’re busy solving scheduling and budget problems and
overcoming delays in getting information, it’s easy to lose sight of your project objective. Remind
yourself constantly of what you want to achieve, and guide your decisions and actions by the end result.
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BUILDING YOUR RESOURCE NETWORK
Project managers organize and plan by identifying and then building a network. This network consists of
people from their departments, other departments, and, in some instances, outside of the company.

Example: A sales manager had two of his own employees on his team, but he also asked for help from
salespeople, fulfillment, and customer service to develop information necessary to the project.
Depending on the complexity of the project and the number of people on the team, you may structure the
project one of two ways: direct structure or organizational structure. A direct structure is one in which you are
in touch with each team member, and it is used when there’s no need for a middle reporting layer. This
structure is similar to that of a small department in which the manager supervises each employee. This
approach has the advantage of simplicity, direct contact, and lack of the bureaucracy that might be created
with middle reporting layers. The direct team structure is illustrated in Figure 2-2.
The organizational structure is necessary if your project team includes many internal and external members
and when your monitoring and control functions will take up most of your time. In this case, you need to be
able to delegate supervision and scheduling control to an internal assistant and to an external primary contact.
You will still want to be in touch with members of the team, and it will be important to avoid setting up an
overly bureaucratic system; that would only take away from the desired effectiveness of your team. The
purpose of the organizational structure is to share responsibility for a larger group, illustrated in Figure 2-3.
Figure 2-2 Direct team structure.
The structure you choose to build for your project team depends on the scope and complexity of each project.
You want to create an effective team that’s able to operate with the appropriate level of supervision and
without unnecessary reporting layers. Team members need to communicate with leadership, whether that
means you alone or assistants to whom you have delegated clear responsibilities.
Example: One manager is currently responsible for two different projects. The first project is short-term and
fairly simple, involving a team of three employees. For this project, she has put a direct team structure in
place. The second project is more complicated, both in objective and size of the team. She has appointed an
assistant to coordinate the work of internal team members, and also depends on a fellow manager as a primary
contact for project team members in that manager’s department.
Figure 2-3 Organizational team structure.
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If an announcement meeting is not called at the time a project is assigned to you, recommend calling one. The
executive should briefly explain the purpose and objective of the task and clearly identify you as the project
manager. Once everyone understands what you’ll be doing, it will be easier for you to organize your project
team and contact the resources you’ll need. Most of all, a brief meeting will help avoid your having to explain
what you’re doing and why, or having to deal tactfully with other managers who have not been informed
about your project.
Support your recommendation for the announcement meeting with these points:
1. Announcing a new project defines it for everyone involved, and clarifies the intended purpose. If the
meeting is not held, definition will be a problem each time you have to contact a resource.
2. The meeting helps ensure success, because everyone gets the message at the same time and from the
same authoritative source. Your ability to lead the project team is aided when the project is launched
from the top.
3. A demonstration of executive support for the project manager helps the team to achieve its goals.
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However, it’s important to let others in on the decision when they or employees reporting to them will
also be affected, either as a team member or as a resource for the team.
If you have identified your project team by the time the announcement meeting takes place, each member
should be invited along with individual managers or supervisors of their departments. Introducing the project
to everyone—team members and their supervisors—makes your job of working with other departments much
easier.
There’s a significant difference between trying to achieve a project task that conflicts with departmental goals
and working with other managers to resolve problems. Inviting the managers to the initial project meeting
makes them feel included in the process. That sets a positive tone and helps you to function as project
manager. The alternative is having to continually struggle with a manager who was left out of the
decision-making process at the beginning.
SETTING PROJECT OBJECTIVES
Once your project is launched, how do you get the team working together? It won’t be enough to explain what
the project will achieve and begin handing out assigments. Your team should be oriented with as much
information as possible. And their participation should be encouraged from the beginning.

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THE INITIAL SCHEDULE
Besides establishing a preliminary division of responsibilities, start your project by coming up with a schedule
for completion (see Figure 2-5)—not only of the entire project, but of each phase. Begin with two dates: the
start date and the completion date. In between, you need to identify logical phases (including responsibilites
among your team) and a realistic deadline for each.
Some phases may overlap. When two or more team members are working independently, it will not always be
necessary for one group to wait for the other. Overlapping of phases adds a lot of flexibility to a schedule that
otherwise would leave little room for delayed completion.
Your initial schedule should include the following deadlines:
• Definition of purpose and identification of specific task responsibilities, scheduling, and budget
• Identification of phases
• Review of completed phases
• Completion (e.g., preparation of reports, final versions of documentation, forms, and other results of